The Celestia price seems ready for a new rally. Analysts note that negative funding rates are increasing while the price stays stable. This is interesting because Celestia ($TIA) has risen by 15.19% in the last 24 hours, making it the second-highest gainer after Pi Network (PI) on CoinMarketCap.
Negative Funding Spikes as Celestia Price Holds Up
Crypto analyst RJ has noticed an interesting trend in Celestia ($TIA). Negative funding rates are on the rise, yet the price remains stable. This means more traders are betting against the asset, even though it hasn’t reached new lower lows. RJ points out that this trend is happening with several coins, suggesting a broader market trend.
In perpetual futures contracts, funding rates show how much it costs to hold a position. Negative funding occurs when short traders pay long traders a fee, which often shows that many people are feeling very bearish about the market.
However, if negative funding rises while the price stays stable or increases, it can mean that short traders are becoming overly aggressive, which could lead to a short squeeze.
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A short squeeze happens when heavily shorted assets suddenly surge in price, forcing short traders to buy back the asset to close their positions, which increases upward momentum.
If $TIA continues to hold or push higher despite bearish pressure, it could trigger a squeeze, sending prices up quickly as traders rush to cover their losses.
Analyst Sets $6 TIA Price Target
Crypto analyst World of Charts stated in a recent update that Celestia ($TIA) has broken through key trendline resistance. The analyst says $TIA bounced off a key support area and retested the breakout level successfully, confirming a bullish reversal.
The technical development suggests that the TIA price is gaining strength and could be gearing up for sustained upward momentum.
The analyst expects the Celestia price to push towards the downtrend line. If the price reaches this level and breaks out, it can indicate a larger trend reversal, which can lead to higher price levels in the near future.
The analyst expects $TIA to rise to $6 soon, potentially 77.5% above its current level.
Strong buying momentum following the breakout above the trendline supports the forecast. Traders should, however, watch out for potential resistance along the way, as previous price action suggests profit-taking or market reaction could slow down the rally.
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